Apart from representing a groundbreaking technology that is bound to change the world of finance, the cryptocurrencies attract flocks of retail traders and institutional investors with their volatility capacities that promise significant returns even on a relatively modest investment.
Just a quick reminder that price volatility means a standard deviation of returns from a given digital asset. In simpler terms, high volatility implies that the price is moving in large swings to the upside or to the downside, which bear potential profits as well as significant risks. Low volatility, on the other hand, suggests much calmer and predictable price fluctuations that make it safer to hold a cryptocurrency or gather a large trading position, since the market conditions are stable, but also limits the opportunities for profit-making.
Medium volatility is considered the most appropriate option for fruitful trading because it is usually associated with decent price swings within the framework of an established trend.
However, knowing the volatility percentage alone isn’t sufficient for an accurate price prediction of SOLVE as it doesn’t reflect other crucial aspects of price formation, such as crowd sentiments, fear in particular, which, as even a nascent trader knows, is one of the two main drivers - along with greed - of asset prices.
In the 1950s, a renowned economist Harry Markowitz suggested that volatility, and the implied risk, must be taken into account when assessing the performance of a stock or a bond - in our case, it’s SOLVE - and calculating the expected returns. This idea brought him a Nobel Prize, by the way. For some time, the brightest academics and traders had been building a way to measure volatility and the expectation on the part of the crowd, which resulted in the introduction of the Crypto Volatility Index (CVIX), which also became known as Fear Gauge, by the Chicago Board Options Exchange (CBOE) that offers options on top indices and stocks. CVIX measures market expectations with regard to volatility and price movement on the basis of a ration of call and put options on S&P 500, a fundamental stock market index that reflects the performance of the 500 largest US corporations, such as Apple (AAPL), Google (GOOGL), and Facebook (FB).
Options are a form of derivatives that allow traders an opportunity to purchase or sell an asset at a strike price within the designated time frame. When a trader wants to buy the asset, he obtains a call option contract. Conversely, getting a put option means that the holder wishes to sell the asset since he fears that it would depreciate in value substantially.
The Crypto Volatility Index takes into account the overall amount of options on a particular asset and the ratio between put and call options to gauge the sentiment among market participants effectively. The prevalence of put options means that holders fear that the price would decrease sharply within the next 30 days, the period of expiration of options contract, and vice versa. Therefore, the Crypto Volatility Index hints at the probable extent of price fluctuation over the coming month (the forward-looking volatility) and is indispensable for the diligent price analysis and forecasting.
After some adaptations, CVIX now enjoys wide acceptance in the cryptocurrency market, along with Forex, stocks, and indices markets, because it combines the showings derived from the traditional market (mainly S&P 500) and the market of cryptocurrency derivatives that has been developing in strides over the years. The behavior of the S&P 500 index has become crucial for the cryptocurrency market due to the increasing correlation with Bitcoin, the dominant cryptocurrency that exerts immense influence on the price of alternative coins.
The Crypto Volatility Index is a principal instrument of our SOLVE price prediction model, together with the thorough fundamental analysis and the assessment of price action on multiple time frames, candlestick patterns, and readings of all key indicators, such as Bollinger Bands and Average True Range that also deal with volatility, and moving averages.
Right now, the Crypto Volatility Index with regard to the SOLVE price stands at 35, which is a modest value, meaning that traders are to expect some swings to the upside or the downside but without any disruptive changes of the overall trend structure. Evidently, this is the most opportune time to profit in the SOLVE market by exploiting your skills as a swing trader while still being able to flow with the trend.
The present price of SOLVE is $0.120667 that marks the -0.48% change on the day; -11.76% over the previous month; -32.03% during the past year. The average trading volume of SOLVE stands at $41 090 091, subject to moderate changes in the coming weeks. Having conducted the all-encompassing analysis of CVIX readings and other crucial indicators, we reached the conclusion that the ultimate price target for the day stands at $0.114235, which is the -5.33% fluctuation from its current standings.
The analysis of SOLVE historical price action suggests that the period of medium volatility, with CVIX readings at 35, lasts for an average of 10-15 days, during which traders should try to extract as much profit from the SOLVE market as possible. Thanks to the use of deep learning algorithms and artificial intelligence to facilitate CVIX efficiency, we were able to obtain the following price prognosis:
In 10 days, the price of SOLVE will be $0.109229, a -9.48% fluctuation;
In 20 days, the value of SOLVE will change to $0.085501 after the -29.14% drop;
In 30 days, SOLVE is going to be priced at $0.063803, marking the -47.12% chance;
In 1 year, SOLVE will cost $0.089324, following the -25.97%% decrease.
When CVIX shows 35 in the SOLVE market, it means that traders should pay attention to where they place stop-losses, because putting a stop-loss to tightly to the price action could easily result in you being kicked out of the market before the price begins to move in your favor. Make sure to look for bearish and bullish divergences and convergences between CVIX and the price action that could hint at the direction of the next price move. And remember, the trend is your friend, so try to refrain from going against it when CVIX is at current levels.
The SOLVE price prediction provided by Crypto Rating doesn’t constitute financial advice or a guarantee of profits. Trading cryptocurrencies is associated with the elevated risk of losses for which traders bear sole responsibility, while Crypto Rating offers comprehensive analysis and forecasts that could only supplement traders’ strategies.
Please read our Disclaimer before using price predictions.
What is the current price of SOLVE (SOLVE)?
The current price of SOLVE is $0.120667.
What is the current market capitalization of SOLVE (SOLVE)?
The current market capitalization of SOLVE is $41 090 091.
What will be the price of SOLVE (SOLVE) Tomorrow?
Our algorithm forecasts that the price of SOLVE will reach $0.114235 tomorrow.
In 1 year from now what will 1 SOLVE be worth?
As per the forecast and algorithmic analysis, the the price of 1 SOLVE will be around $0.089324.
Is it profitable to invest in SOLVE (SOLVE)?
The investment period is the number 1 decisive factor here. Based on last year price data the system would put "With Caution" investment status for SOLVE (SOLVE) as a short term investment. SOLVE can get a "Profitable" investment status based on our prediction algorithm with long term investment horizon of 3 to 5 years.
Will SOLVE be growing in the Future?
SOLVE is potentially one of the most profitable among digital coins.
How high can the Price of SOLVE go?
Our algorithm forecasts that the price of SOLVE will reach $0.177531 by 2023.
Is SOLVE (SOLVE) flashing a "Buy" signal now?
Yes, our algorithm predicts it's the right time to buy SOLVE now.
We publish the most accurate SOLVE Forecasts and News including crypto industry experts' opinion on a daily basis
What do you think about our SOLVE price predictions? Share with us now in the comments section.